Employee vs. Employer Contributions
Like most 401(k) plans, the Allied Parking, Inc.. Savings Plan likely includes both employee and employer contributions. Employee contributions are fully earned and vested. But employer matching contributions may be subject to a vesting schedule. This means only certain portions may actually be available for division at the time of divorce.
When drafting a QDRO, make sure to:
- Distinguish between vested and unvested employer contributions
- Use language that preserves the alternate payee’s rights to future vesting, if applicable

